Clearing the Air
CUSACorp Posts Profits After Settling Java U Rent Disagreement
Despite large losses incurred operating Reggie’s student bar, CUSACorp is posting a profit for the second consecutive month.
According to files provided by Concordia Student Union’s VP Finance Zhuo Ling, CUSACorp, the CSU’s for-profit arm, made a net profit of $960 in October.
Though Reggie’s operating costs were $7,214.40 higher than its profits, Java U’s rental income of $8,175 allowed them to break even.
Ling said Java U’s typical rent is $6,500. The extra $1,675 is due to $20,000 worth of unpaid rent from 2008; this added cost will be compensated every month until the total amount owed is paid in full.
Ling said that the student bar’s setback could be attributed to the administration’s new food policies that make it extremely difficult to sell food at Reggie’s. On top of a time-consuming license renewal process, foot traffic is also an issue, Ling said.
“As a student bar in a downtown campus, Reggie’s does not get enough traffic to be profitable during the week except on Thursday,” said Ling. “Even on Thursdays, the drinks are cheap and we get a lower margin.”
The low profit margins also connect with CUSACorp’s Ten Weeks for Charity campaign at Reggie’s, which is being spearheaded by Ling.
“Every Thursday, a portion of Reggie’s door sales go to a local charity,” he said, explaining that $700 was raised for UNICEF, $800 was raised for breast cancer initiative Save to Shave and last week’s door proceeds went to Curry Cures Cancer. The campaign is in its third week.
“We invite [charity fundraiser groups] to set up tables near Reggie’s door where they can promote their cause,” said Ling.
Getting more people in the bar is CUSACorp’s main priority for next semester, he continued.
Though last year’s successful “Hockey Night at Reggie’s” promotional event wasn’t going to be the main goalthis time around, Ling said focusing on promoting hockey games to bring more people in each week is in the works.
Ling lamented that the turnover of the VP Finance makes accounting for CUSACorp complicated each year, since the responsibility falls into someone else’s hands.
“There is not a lot of consistency in CUSACorp because everyone comes here with fresh ideas and are gung-ho in the beginning,” said Ling.
He said he plans to make a five-year plan for CSU’s profit-making arm, which is in the preliminary stages of discussion.
This article originally appeared in Volume 31, Issue 15, published November 23, 2010.